Monday, August 31, 2009

People Sometimes Never Learn

Fears Over Chávez Threaten Oil Auction -- Financial Times

The future of one of the world’s biggest oil auctions is in jeopardy as Venezuela’s socialist government and oil companies remain at loggerheads over terms to develop a key oil field.

Repeated delays in the bidding for rights to exploit the Orinoco Belt – which was postponed for a third time at the end of last month – reflect investor concerns about political risk, onerous financing costs and the profitability of the projects. Lower oil prices and a stuttering global economy only add to the problem.

Read more ....

My Comment: A good friend of mine is a ticket scalper. A few years ago he bought a block of Formula 1 Grand Prix tickets at a great discount. On the day of the event, he and about 50 of his customers found out that they were counterfeit. When I asked him why did he buy the tickets without realizing that maybe there was a catch .... his answer .... "the thief played on my greed".

Venezuela's Chavez is doing the same thing right now. He is playing on the greed of major oil companies to invest in something that anyone in his right mind will know that he will seize later on.

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